- Offshore yuan exchange rate (CNH) hit the highest level since July soon before press time.
- Dovish Fed expectations, tensions in Washington likely hurting the greenback.
The offshore yuan (CNH) rose to 6.7351 per dollar a few minutes ago; its highest level since mid-July.
The uptick in the CNH is likely associated with the dovish Fed expectations. On Friday, Dow Jones Newswires reported that the US central bank could stop normalizing its balance sheet sooner-than-expected. Further, worsening political situation for President Trump is likely accentuating bearish pressures around the greenback. Roger Stone, a former advisor to Donald Trump, was arrested on Friday on charges of lying about his cooperation with Wikileaks during the 2016 Presidential Elections.
Moreover, the dollar bearish stories are currently overshadowing news flow out of China. The industrial profits in the world's second-largest economy fell 1.9 percent year-on-year in December, following a 1.8 percent drop in November, the official data released a few minutes ago showed. The weak data, however, has not had any bearish impact on the CNH.
The greenback, therefore, could remain under pressure ahead of the FOMC rate decision, scheduled for Wednesday. The USD/CNH pair could slide to 6.6956 (38.2% Fib R of March low/Nov high) if the central bank reinforces the market expectation that the tightening cycle has ended.
USD/CNH Technical Levels
Today Last Price: 6.7407
Today Daily change: -0.0122 pips
Today Daily change %: -0.18%
Today Daily Open: 6.7529
Daily SMA20: 6.813
Daily SMA50: 6.8685
Daily SMA100: 6.8882
Daily SMA200: 6.7441
Previous Daily High: 6.8006
Previous Daily Low: 6.7525
Previous Weekly High: 6.8189
Previous Weekly Low: 6.7525
Previous Monthly High: 6.9509
Previous Monthly Low: 6.826
Daily Fibonacci 38.2%: 6.7709
Daily Fibonacci 61.8%: 6.7822
Daily Pivot Point S1: 6.7368
Daily Pivot Point S2: 6.7206
Daily Pivot Point S3: 6.6887
Daily Pivot Point R1: 6.7848
Daily Pivot Point R2: 6.8167
Daily Pivot Point R3: 6.8329
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